Key dates for Accountants in 2021
Alongside ongoing annual deadlines related to self-assessment, running payroll and general company administration, 2021 also presents a unique set of time-sensitive tasks associated with Brexit and coronavirus.
Accountants must manage and plan for these deadlines accordingly, to ensure clients stay compliant and avoid unnecessary fines. Additionally, raising awareness of deadlines to clients will assure them that you have their best interests at heart, as well as being able to manage their expectations with regards to the data that’s required to complete the necessary filings.
With coronavirus, Brexit and IR35 deadlines compounding an already full calendar, 2021 is shaping up to be a busy year. Now, more than ever, accountants need to stay up to date and embrace efficient working practices so that they can serve their clients with timely and strategic advice.
2021 is not the year to be held back by slow systems and manual processes.
By incorporating brand new digital technologies, accountants will benefit from the efficiency gains of innovation and automation which, in turn, will afford them additional bandwidth to manage the raft of deadlines and added complexities that this year will undoubtedly bring.
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This blog should be read as a guide to key dates in 2021 and not a comprehensive calendar for all deadlines. While the article will be updated periodically, dates may change.
*Update - this article now reflects key dates outlined by the budget on 3 March.
January
29 January - Self employment income support scheme
*UPDATE*
In addition to the four previously announced SEISS grants (worth 80% of three months average trading profits and capped at £7,500), there will now be a fifth to cover the period from May until July. The grants were previously only open to those who had submitted tax returns in 2018-19, but the last two payments will now also apply to people who have filed 2019-20 tax returns.
31 January - First payment on account for self-assessment
Income tax thresholds frozen
While income tax bands will increase in line with CPI in 2021-22, they will be frozen for four years from April 2022.
In the forthcoming tax year, the basic rate (20%) will increase from £12,500 to £12,570, with the higher rate (40%) rising from £50,000 to £50,270. It is expected that this stealth tax will raise an extra £6bn a year.
Accountants will need to update client payrolls as well as reconsidering remuneration strategies for director clients who are paid by salary or combination of salary and dividend.
March
3 March - The Budget
31 March - Mortgage holidays
31 March - Bounce back loans and CBILS
The two flagship Government business support schemes for the pandemic are due to end on 31 March 2021, with the original deadlines extended twice.
31 March - VAT deferrals due to coronavirus
On 31 March 2021 VAT deferral payments (related to the periods between 20 March and 30 June 2020) related to coronavirus become due.
April
6 April - New tax year
6 April - IR35 in the private sector
After being put back for one year, IR35 in the private sector will finally come into being from 6 April 2021.
19 April - Year-end payroll
30 April - Coronavirus Job Retention Scheme (furlough) ends
Furlough extension
The furlough scheme is being extended past April and is now open until the end of September. The government will continue to pay employees 80% of their wages, up to £2,500. However, employers must pay 10% of wages in July and 20% in August and September.
Accountants should inform their clients of these changes to save employees who may be at risk of redundancy and update clients on associated changes.
May
31 May - P60s
June
30 June - EU Settlement scheme
July
6 July - P11Ds
31 July - Second payment on account for self-assessment
October
31 October - Self-assessment (2020/21) paper filing deadline
November
We'll update in due course when we know what deadlines are likely to land!
December
We'll update in due course when we know what deadlines are likely to land!